Higher utility bills and university tuition fees are an “own goal” by the
Government that will drive up inflation, the Governor of the Bank of England
said yesterday.

Sir Mervyn King predicted that the rate of consumer price inflation would
remain above the Bank’s 2 per cent target until the start of 2016, worsening
the squeeze on household budgets.

The Governor blamed the coalition, saying that revenue-raising measures such
as green levies on household energy bills were damaging take-home pay. His
comments will add to the pressure on George Osborne, who faces backbench
discontent before next month’s Budget because of